TIDMREVB
RNS Number : 5832U
Revolution Beauty Group PLC
02 August 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For Immediate Release 2 August 2022
REVOLUTION BEAUTY GROUP PLC
("Revolution Beauty", the "Group" or the "Company")
Trading update and change to final results announcement date
Revolution Beauty Group Plc (AIM: REVB) the multi-channel mass
beauty innovator, announces a change to its full year results
announcement date and a trading update.
Final results for the year ended 28 February 2022
The Company will now report its final results for the year ended
28 February 2022 ("FY22") on 30 August 2022. This is due to
additional time required to complete the Company's audit.
Management is not aware of any material issues that have been
raised by the auditors during the audit process to date. The annual
report will be sent to shareholders and made available on our
website on the 31 August 2022.
Trading Update and Guidance
Despite the unprecedented macroeconomic backdrop in the first
half of 2022, Revolution Beauty has continued to make progress on
its strategy to grow a global brand and is now in c.15,000 stores
worldwide.
Despite this progress, we have seen short-term challenges as a
result of post Covid retailer updates during Q1 FY23 (notably in
the USA), cost inflation, supply chain issues and the war in
Ukraine.
As such, we now expect the first half of the year to deliver low
single digit revenue growth versus H1 FY22, resulting in a small
adjusted EBITDA loss for the six month period ending 31 August
2022. For the full year to 28 February 2023, we now expect between
GBP215m - GBP225m net sales and adj. EBITDA of between GBP18m -
GBP20m.
As at 31 July 2022, the Group had net debt of GBP21.2m driven by
an increase in stock, working capital and capex requirements. The
Group has a GBP40m revolving credit facility which the directors
believe provides sufficient liquidity for the future.
Sales and profitability during H1 FY23 is being impacted by
three factors:
-- Post-pandemic, US retailers have adopted temporary changes
to sales and buying strategies to reset stock levels which
has impacted sales growth. We expect buying strategies
to normalise as we move into the second half. Meanwhile
two of the Group's key growth markets, Russia and the
Ukraine, immediately ceased trading from the end of February,
having a c.GBP9m impact on annualised revenue;
-- The Group experienced cost inflation across operations,
particularly in logistics and freight. It has also experienced
increased staff costs as a result of direct and indirect
wage inflation; and
-- As consumers return to pre-pandemic habits and shop in-store
rather than online, we have seen a number of our digital
partners reduce their stockholdings below industry norms.
This has had a material impact on sales growth across
our DTC channel in the first half so far.
As we approach the seasonally stronger second half, and actively
manage costs across the business, we will benefit from leveraging
our overhead base in line with previous years. Confidence in the
second half is underpinned by significantly increased retailer
distribution in H2 FY23 versus H2 FY22.
Adam Minto, Revolution Beauty CEO, commented:
"While the Group has been impacted by near-term economic and
political headwinds, we remain confident in the strength of our
long-term strategy and the significant growth opportunities open to
us. In particular, we remain focused on innovation and the
development of new categories while continuing to further build
brand awareness, especially in the US.
"This has been a period in which we have strengthened our market
position and built sales across geographies, despite the
unprecedented macro-economic backdrop. We have continued to deliver
against our omni-channel strategy and are now in 15,000 stores
worldwide. We secured a second UK retail partner with Boots and
launched into 2,800 Walgreen stores. This has been achieved by
providing our customers with the highest quality beauty products at
the best possible price."
For further information please contact:
Revolution Beauty Investor Relations
Elizabeth Lake / Nic Wing
investor.relations@revolutionbeautyplc.com
J oint Corporate Brokers
Zeus (NOMAD): Nick Cowles / Jamie Tel: +44 (0) 161 831 1512
Peel / Jordan Warburton
Liberum: Clayton Bush / Edward Tel: +44 (0) 203 100 2222
Thomas / Miquela Bezuidenhoudt
Media enquiries:
Headland Consultancy Tel: +44 (0)20 3805 4822
Rosh Field / Will Smith / Marta Revolutionbeauty@headlandconsultancy.com
Parry-Jones
About Revolution Beauty
Revolution Beauty is a global mass beauty and personal care
business which operates a multi brand, multi category strategy and
sells its products both direct-to-consumer (DTC) via its e-commerce
operations, and in physical and digital retailers through wholesale
relationships.
Today, the Group has a retail footprint of c.15,000 doors across
leading retail chains in the UK, USA and other international
markets. Revolution Beauty has access to a wide customer base,
predominantly aged between 16 and 35, through its digital partners
and own DTC platform. It has established and invested to streamline
its supply chain with its own manufacturing facility in the UK, and
third-party warehousing facilities across the UK, USA and
Australia. The Group has offices in the UK, USA, New Zealand and
Germany. Revolution Beauty currently employs 411 people.
The total mass beauty market was worth $219bn in 2019 and is
expected to grow to $274bn over the next 3 years, driven by a new
marketing era dominated by Social Media and influencers. Revolution
Beauty has been a leading innovator building a significant global
following across social channels, enabling it to spot trends and
respond quickly to consumer demand.
Revolution Beauty strategy
Revolution Beauty Group is disrupting the traditional beauty
market through products that are more accessible to more people.
Through its digital-first strategy, Revolution Beauty brings
trend-led products to market faster than competitors. We invest in
innovative marketing strategies designed to appeal to a wider
audience, and offer products combining quality, inclusivity,
innovation and affordability.
- Ends -
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